Insider trading probe ensnares 14 more

By Matthew Goldstein and Jonathan Stempel

NEW YORK (Reuters) - Fourteen people were charged with fraud and conspiracy in a dramatic widening of an insider trading scandal that has ensnared hedge fund managers, top Silicon Valley executives and a bevy of white-shoe advisers.

In complaints that read like scripts for the TV series "The Sopranos," prosecutors alleged suspects dropped off bags full of cash, used prepaid cellphones to dodge wiretaps, and used nicknames such as "the Greek."

"As we allege, some of the defendants -- taking a page from the drug dealer's playbook -- deliberately used anonymous, hard-to-trace, prepaid cellphones in order to avoid detection by law enforcement," federal prosecutor Preet Bharara told a news conference.

"When sophisticated business people begin to adopt the methods of common criminals, we have no choice but to treat them as such," he said.

The latest charges involve some of the same companies and individuals implicated in the Galleon Group insider trading scandal that broke three weeks ago. It was not clear whether the illegal networks were linked.

"People will probably ask just how pervasive is insider trading these days? Is this just the tip of the iceberg?" Bharara said. "We don't have an answer to that yet but we aim to find out."

In the largest branch of the investigation unveiled on Thursday, Zvi Goffer, manager of New York-based trading firm Incremental Capital, was accused of leading an insider trading ring that netted $11 million.

Prosecutors said they had uncovered illegal profits of more than $20 million -- on top of the $20 million that authorities say was pocketed by the Galleon group.